[Click eStock] "Abaco, Secondary Battery Performance Fully Reflected"

Hana Securities analyzed on the 13th that Abaco's secondary battery performance will be fully reflected this year. No investment opinion or target price was provided.

Hana Securities expected Abaco's performance to improve this year thanks to steady orders so far. They explained, "Abaco's logistics automation equipment for electrode and assembly processes maintains a steady market share within the value chain of client LG Energy Solution and is proving this through continuous orders," adding, "Since secondary battery orders were concentrated in the second half of last year, they are expected to be fully reflected in the 2024 performance after shipment."

They also anticipated that orders for roll press equipment would be possible. They stated, "Abaco's roll press equipment has completed independent development and is undergoing performance testing for domestic clients," and added, "Considering the start of testing, pilot volume deliveries to client domestic factories are expected within the first to second quarter of this year."

They explained, "Roll press equipment is a high value-added device used in the secondary battery electrode process, capable of implementing not only the single roll press method but also the tandem roll press method," further explaining that the tandem roll press method is equipment that presses the coated electrode twice continuously, enabling thickness reduction and density improvement. They added, "Since it can be combined with unmanned automation technology and applied to smart factories, demand from clients is expected to be high."

Hana Securities forecasted that Abaco will record sales and operating profit of 364.8 billion KRW and 29.4 billion KRW this year, respectively, representing increases of 95.2% and 568.2% compared to the previous year. Kim Seong-ho, a researcher at Hana Securities, explained, "About 280 billion KRW worth of orders from 2023 will be deferred to this year and reflected in the performance," adding, "Although last year's profit margin was poor due to costs related to equipment development and personnel recruitment, the operating leverage effect is expected to fully materialize with cost reflection and secondary battery order performance."